Saturday, August 22, 2009
Do Stimulus Packages ever Stimulate anything but Deficits?
Here are four charts that project GDP growth in the US, UK,Germany and Brazil (note the Brazilian estimates for q2 and q3 show a slight rate of growth). Quick which of these countries had massive stimulus packages to get their economies restarted after the economic downturn that hit the world economy in 2008? If you get this one wrong you are not paying attention.
Wizards like Paul Krugman would have us believe that we just did not spend enough to create a real stimulus. But wasn't he the guy who projected recessions during almost the entire presidency of W?
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Isn't part of the reason for these statistics that the countries in question are so much more heavily economically constrained (i.e. they don't grow in good times like ours can) than ours, and so for things that affect our economy like growth through massive speculation, their economies aren't so susceptible too
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